Recent tax statistics from the South African Revenue Service (SARS) revealed a higher tax collection rate in December 2020 for personal income tax and corporate tax than the previous year. Expanding the taxpayer base is a vital step in the long-term development of our economy, and tech has a key role to play. One area it can make a real difference is tax.
#Vat 201 forms software
It is a must for businesses to have a software which will not only help the business to account for VAT but also helps the businesses to generate the valid VAT return forms in the format which is accepted by FTA.We’ve already seen the transformational role that digitisation can have on businesses. the businesses are required to prepare the return in the prescribed format and manually keen the values in FTA portal. The VAT returns are required to be filed electronically i.e. Tax Refunds for Tourists Scheme provided.Apart from the above mandatory details which is applicable for most of the businesses in UAE, the return format consist other additional details listed below. The above are the some of the mandatory details which need to be furnished in the VAT return form. Otherwise, it will be VAT refundable which can be carried forward to next return period or can be claimed as a refund. If output VAT is higher than input VAT, it will result in VAT Payable. This will be arrived at, after adjusting the Output Tax with Recoverable Input Tax. You need to mention the total output tax collected and recoverable input tax during the return period.
The total value of Due Tax and Recoverable Tax
Also, the total expenses and recoverable Input Tax needs to be shown separately for standard rated expenses (on which 5% VAT was paid) and the expenses, subject to reverse charge. Please note, the value of input tax credit which is restricted or which you are not eligible to claim, should be reduced from the total and only the net value needs to be mentioned. You need to declare the value of expenses incurred on which you are eligible to recover Input Tax and the amount of Recoverable Input Tax in the VAT return period. Details of the expenses (Purchases) made in the VAT return period Supplies such as imports and other notified supplies on which the recipient or buyer is liable to pay VAT on reverse charge mechanism. which are notified as exempt supplies need to be captured here. Supplies such as financial services, residential building etc. The details of notified supplies which are under Zero-rated list needs to be furnished in this section.
You need to furnish the value of supplies (sales) and output VAT collected during the return period. Details of the Supplies (sales) made in the VAT return period For example, for January to March'18, it will be Jan-Mar'18. Tax Period is the return period to which the Tax Return relates. Here, the date on which returns are submitted will be captured. The VAT returns need to be submitted within 28 days following the end of the VAT return period. Based on the TRN number, the name and address details are expected to be auto-populated.
#Vat 201 forms registration
The Tax Registration Number (TRN) provided by the FTA needs to be furnished in all the VAT Returns. The following are the details which need to be contained in the VAT Return: The name, address and the TRN of the Registrant The UAE VAT Executive Regulations has prescribed the mandatory information which needs to be declared by the registered person in his VAT Return. In which the registered person has to furnish the consolidated details of total supplies - both purchase and sales, output VAT collected on supplies, eligible input VAT paid on purchases, input VAT recovered and the total tax due. The VAT return form 201 is at a summary level or a consolidated level. The VAT returns are required to be filed on a quarterly basis and a few types of businesses may be requested to file on a monthly basis. Starting from 1st January 2018, the businesses registered under UAE VAT are required to file online VAT returns. The Total value of Due Tax and Recoverable Tax.Details of the expenses (Purchases) made in the VAT return period.Details of the Supplies (sales) made in the VAT return period.The Name, address and the TRN of the Registrant.